Glanbia confirmed this morning that it has formed a new joint venture company with Milk Link Ltd to serve the UK cheese market.
The new company will be called Cheese Company Holdings Ltd (CCH) and Glanbia will hold a 25 per cent stake.
The firm had confirmed that it was in discussions with Milk Link in a statement to the Irish Stock Exchange a week ago.
Glanbia's will contribute €p;13.1 million via a share premium spread over four years to CCH while Milk Link will contribute £2.5 million annually.
The new venture will be the second largest cheese producer in the UK. CCH will supply the UK retail sector and will operate four cheese processing facilities and a consumer packing facility in the UK.
Glanbia also confirmed it is to sell Glanbia Foods to the new venture for €p;140.1 million and said it will use the proceeds of this to invest in its core markets.
Milk Link accounts for about one-tenth of UK milk production. The co-operative is the fourth-largest dairy business in the UK, and has an annual turnover exceeding €p;500 million and it represents some 2,400 farmers.
